CEO John Asbury and President Maria P. Tedesco. Photo by Caroline Martin
The $66 billion merger of BB&T Corp. and SunTrust Banks Inc. is expected to dramatically change Virginia’s banking landscape — and the repercussions may prove surprisingly beneficial for the commonwealth’s community banks.
Combining regional powerhouses BB&T and SunTrust under a new name, Truist Financial, makes sense in terms of efficiency and cost savings, banking experts say. But the all-stock deal — creating the sixth-largest U.S. bank, with assets of $442 billion — will affect Virginia banking for a long time, they predict.
“Virginia is ground zero for overlays,” says John Asbury, president and CEO of Richmond-based Atlantic Union Bankshares Corp., referring to overlapping operations of BB&T and SunTrust. “The merger has sweeping implications for Virginia — causing a multiyear disruption — and it’s perfect timing for us.”
The fallout, which will include divestitures, branch closings, layoffs and other disruptions, will bring opportunity for community banks. And as Virginia’s largest independent bank, Atlantic Union is positioned to be one of the “bigger beneficiaries of this merger,” according to an April investment report from research analyst Laurie Hunsicker, managing director of Washington, D.C.-based Compass Point Research & Trading LLC.
